2019 pca international conference / september 22-24 vancouver pine chemicals industry ... · 2019....
TRANSCRIPT
2019 PCA International Conference / September 22-24 Vancouver
Pine Chemicals Industry Global overview and TrendsMichel Baumassy , Forchem Oy
A bit of Rosin history in Canada:The Birch Bark Canoe
Principal mean of water transportation for Aboriginal people.
Used extensively in the fur trade from the early 17th to the mid-
19th centuries.
Seams waterproofed with hot Pine Resin applied with a stick.
Pine Chemicals: 3 Different Processes
Tree Tapping:
-Gum Turpentine
-Gum Rosin
Extraction from pine stumps:
-Wood Turpentine
-Wood Rosin
Kraft process at Pulpmills:
-Crude Sulfate Turpentine
-Crude Talloil (CTO) :
Talloil Rosin
Talloil Fatty acids
Talloil Pitch
Sterols
CST
CTO
Turpentine
• Volatile fraction of the oleoresin in the conifererous trees
• Largest volume essential oil in nature
• Chemical composition depending on the species and age of the tree and geographical location.
• Main components are C10H16 bicyclic , unsaturated monoterpene hydrocarbons
such as:
. Chemical structure: Terpenes can be considered as polymers of isoprene(C5H8)n
but isoprene is not involved in the biosynthesis
Turpentine Main Components Average Composition (%)
Alpha Pinene Beta Pinene Delta 3 Carene
China / P.Massoniana 80 7
China / P.Elliottii 52 36
China / P.Yunanensis 60 25
Brazil/P.Elliottii 40 45
Brazil /P.Tropical 80 5
Indonesia /P.Merkusii 80 2 12
Portugal 75 17
India 25 3 60
USA (South East) 62 25
USA (NW)/Canada 30 10 20
Finland/Sweden/Russia 55 4 25
Austria 60 13 15
CST: Sulfur compounds 1 – 5 %
Y2019 Gum Turpentine Production: 140 000T
China 56%
Brazil 22%
Indonesia 8%
ROW 14%
Y2019 CST Production: 205 000 T*3-5 Kg / T Softwood Kraft Pulp
North America,
59%Europe/Russia, 33%
ROW, 8%
*Including 20 000 T ? CST from CTO
Y2019 World CST fractionation capacity 255 000 T(Capacity in use: 205 000T)
USA 140 000 T
(4 plants)
France 50 000 T
(1 plant)
ROW 35 000 T
5 plants , CHL,NZL,RUS,CHN)
India 30 000 T
(1 plant)
Y2019 Turpentine Demand(Total Turpentine Production 345 000 T)
USA 120 000 T
France 40 000 T
India 60 000 T
China 90 000 T
ROW 35 000 T
Turpentine demand / Market segment
Fragrances,Camphor, 70%
Resins , 30%
Turpentine demand in China : 90 000T(80% for exports of Terpene Derivatives)
Fragrances 73%
Camphor 16%
Resins 9%Turpentine export 2%
Source: Nanning Songtao Business & Services Co
A few Terpene derivatives• Alpha pinene Terpineol ( Pine oils)
Terpenyl acetate
Dihydromyrcenol
Camphene
Borneol , Isoborneol , Isobornyl acetate
Camphor
Terpene resins
. Beta Pinene Myrcene
Menthol
Nopol,Nopyl acetate
Geraniol , Nerol
Terpene resins
. Delta 3 carene Terpene Phenolic resins
Carvone
Delta 2 Carene , Menthol
Insecticides (old process)
Turpentine Developments
• High demand from fragrance and resin industries
• October 2017: Fire at a Basf plant created additional demand for terpene derivatives from natural origin.
• 2018: Fires at two Terpene derivatives plants in India
• Plant closures in China for environmental reasons
• Mid. 2018 : Chinese Turpentine price reached a peak at USD 5000/T ex factory
• 2019 : Situation getting back to normal
Y2019 CTO Production : 2 Million T40-60 Kg / T Softwood Kraft Pulp
North America,
49%
Europe/Russia, 42%
ROW, 9%
Y2019 CTO Demand / Market Segment
Fractionation, 75%
Biofuels, 16%
Other uses, 9%
Increasing CTO demand for biofuels
Y2019 World CTO fractionation capacity 1.8 Million T(Capacity in use: 1.5 Million T)
USA 0.7 MT
5 Plants
Europe 0.8 MT
6 Plants
Russia 0.16 MT
4 Plants
CHN/JPN/NZL/ZAF
0.14 MT
1 MT = 1 Million Metric T
South Africa
1 Plant
Japan
1 PlantChina
2 (3) Plants
New Zealand
1 Plant
CTO Exports from USAY2018:115 Million USD / 250 000 T
Japan 27 M USD
China 7 M USD
France 17 M USD
Sweden 26 M USD
Finland 30 M USD
Source: Customs statistics
USA
South Africa 6 M USD
Million USD : M USD
Y2018 CTO Other Main Exports
Source: Customs statistics
RussiaFinland 13 M USD
GermanyAustria 8 M USD
Sweden Finland 11 M USD
Finland Sweden 10 M USD
Million USD : M USD
Canada
USA 2.5 M USD
FRA/SWE/FIN 5 M USD
PolandAUT/FIN 6 M USD
Spain France 3 M USD
Pulp And CTO Developments
. 2020/2025 : Investments at pulp mills will result in 200 kT additional CTO but CTO demand for biofuels might increase by 200 kT / 500 kT
• From CTO to Biofuels : FAME , HVO , Co-processing at refinery
• Biofuel prices based on fossil fuel prices + Taxes
• Regulations : Europe ( RED , ILUC, REDII ) , USA ( AFMC expired end Y2013)
• Diesel technology questioned in many countries
• Bio-diesel production out of CTO: Destroying a precious resource
From Dieselgate to Dieselcrash
100% Electrical
(Batteries)
Plug-in Hybrids
Hybrids
Gasoline
Diesel
Forecasts
Europe
Millions of vehicles
(Cars/LUV)
Source: AlixPartners
Cascading is the only intelligent and efficient way to use CTO
CTO
TOR
TOFA
Derivatives
Pitch
Sterols
ResidualPitch for Biofuels
Y2019 Global TOFA Production: 460 000 T
USA,38%
Finland,24%
Russia,9%
Sweden,14%
France,4%
Japan,4%
Austria,2%
China,2% Others,3%
Palm Oil 70 Million T , SBO 55 Million T
Y2019 Global Rosin Production: 1 270 000T
Rosin production going on increasing since Y2016
GumRosin,63%
TallOilRosin,36%
WoodRosin,1%
Y2019 Global Tall Oil Rosin (TOR) Production: 450 000 TY2020 : Min +15 000T
USA,47%
Finland,16%
Russia,6%
Sweden,16%
France,5%
Japan,4%Austria,2%
China,2% Others,2%
Y2019 Global Gum Rosin production: 805 000 T
China 52%
Brazil 23%
Indonesia 10.5%
Vietnam 5%
Argentina 3%Mexico 1.5%
Spain 1.5%India 1%
ROW 2.5%
ROW:
Portugal
Africa
Madagascar
Fidji
Russia
USA …
Rosin production
0
200000
400000
600000
800000
1000000
1200000
1400000
1900 1940 1950 1960 1970 1980 1990 2010 2016 2019
Total Rosin
Gum USA
Wood USA
Total TOR
CGR
CGR Exports
Rosin quality
- Significantdifferences in composition
- Fast growing PinusElliotii with lowerPAN content
P.
Massoniama
P.
Elliotii
SCAN
TOR
P.
Merkusii
Pimaric acid 8% 4% 2% 0.5%
Sandaraco
pimaric acid
1.5% 1.5% 1% 9%
Isopimaric acid 1% 14% 7% 17%
Dehydroabietic
acid
3% 3% 19% 4%
Palustric acid 16% 20% 13% 22%
Abietic acid 49% 20% 43% 20%
Neoabietic acid 14% 16% 4% 11%
Others
(RA,Unsaps)
7.5% 21.5% 11% 16,5%
(10%
Merkusic)
Y2019 Global Resin Production: 2 650 000 THydrocarbon resins becoming commodities…but crackers in
China might change from Naphta to Gas
Terpene resins : Feed costs have been decreasing since a few
months
Rosin, 48%
Hydrocarbon Resins , 49%
Terpene Resins , 3%
Outlook for the Pine Chemical market
• Pine Chemical market reaching 5 Billions USD and growing at a higherrate than average GDP growth .
• Asia will have the fastest growth and will drive the demand.
• Lower carbon footprint of Pine derived chemicals.
• Growing environmental concerns will favour Pine Chemicals.
• Pine Chemical market has proven its resilience and capability to adaptto variations of raw material costs.